Mason Graphite Provides Update Regarding Its Corporate Strategy and on Its Commitment to Re-Accelerate the Lac Gueret Project - Seite 2

As such, to benefit from the structural change rapidly unfolding in the graphite industry, a goal of the newly elected Board is to re-accelerate the development of the Company’s Lac Guéret Graphite project, which was put on hold in April 2020. The Company is of the view that customers are currently looking to secure unprecedented volumes of graphite supply, preferably sourced in North America, to support the electrification of the transportation industry. As such, graphite prices will soon need to reach significantly higher levels to allow for new sources of supply, or upstream integration will be necessary to establish an adequate supply chain. To have a better understanding of the view of the new Board of Directors, investors are invited to review the press release issued on October 29, 2020 and the Dissident Circular filed on Sedar on December 4, 2020.

Further to the impact of the battery related demand, graphene is also reaching an important commercialisation tipping point. NanoXplore, a world leading graphene manufacturer, indicated at its recent annual general meeting that the total apparent graphene demand from all its purchase order discussions adds up to 120,000 tpa in a two-year timeframe, which would require a comparable volume of graphite.

The Company retains a strong cash position, with $25.2 million as of September 30, 2020, representing more than $0.18 per share. The last equity financing of the Company was done at $2.40 in early 2018. The capital structure was not diluted during the downturn and therefore retains the same potential.

The Company also confirms discussions with Investissement Québec, the Company’s largest shareholder, to facilitate the appointment of its nominee to the Board in accordance with the agreement entered in connection with Investissement Québec’s initial investment in the Company in 2014. The Company also expressed its willingness to appoint an additional director to be mutually agreed upon with Investissement Québec.

The Company wishes to remind investors that it entered the Mushalakan Impact Benefit Agreement with the Innu Council of Pessamit in June 2017. Mason Graphite was nominated for the “Best Company in Sustainable Development” by the AEMQ (Association de l’Exploration Minière du Québec) during that same year. Finally, the Company has been collaborating for many years with the World Biosphere Reserve Manicouagan Uapishka, international designation by UNESCO, and during its periodic review of 2017, the report of UNESCO’s external review committee mentioned the exemplarity of Mason Graphite’s approach for the sustainable development and collaboration with local communities.